Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
The Economic Times

Did IRCTC bar some banks from payment gateways? Know the facts here

A senior bank official told economictimes.com that the talks are on with IRCTC and the matter would be resolved soon.
A senior bank official told economictimes.com that the talks are on with IRCTC and the matter would be resolved soon.
NEW DELHI: According to a few media reports, IRCTC has barred some banks from using its payment gateway for debit card transactions, due to which booking tickets has got difficult.

However, IRCTC has claimed that the options to pay through payment gateway using debit/credit card and internet banking are open for all banks. It says consumers are not facing any problems at payment gateways.

IRCTC Director Finance MP Mall clarified that a few banks have been barred from a new value-added service and not payment gateways.

IRCTC had provided a value-added service to banks by directly connecting payments to them, bypassing the payment gateways, for speedy transactions and reconciliations. Since the exercise involved manpower and integration cost, IRCTC asked banks to share a part of their revenue with it. IRCTC claims that some banks did not agree to it, and that's why it had to scrap the new value-added service for those banks.

A senior bank official told economictimes.com that the talks are on with IRCTC and the matter would be resolved soon.

An IRCTC official said if banks are willing to provide the new value-added service free to the customers, IRCTC will not demand any share in their revenues.

IRCTC has found in its analysis that approximately 66% of the e-tickets booked have the ticket value of less than Rs 1,000. As per the latest rules, banks must strictly follow the RBI guidelines regarding transaction charges on Debit cards by charging only 0.25% on transactions upto Rs 1,000 and 0.50% on transactions from Rs 1,000 up to Rs 2,000.
Stay on top of business news with The Economic Times App. Download it Now!